CONDENSED INTERIM FINANCIAL INFORMATION FOR THE NINE … · 2020-02-06 · NOTES TO THE CONDENSED...

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009

COMPANY INFORMATION

UNILEVER PAKISTAN LIMITED

BOARD OF DIRECTORS

Mr. Ehsan A. Malik Chairman & Chief Executive

Mr. Imran Husain Executive Director & CFO

Mr. M. Qayser Alam Executive Director

Mr. Noeman Shirazi Executive Director

Ms. Shazia Syed Executive Director

Mr. Zaffar A. Khan Non- Executive Director

Mr. Khalid Rafi Non- Executive Director

COMPANY SECRETARY

Mr. Amar Naseer

AUDIT COMMITTEE

Mr. Zaffar A. Khan Chairman

Mr. Khalid Rafi Member

Mr. Qayser Alam Member

Mr. Imtiaz Jaleel Head of Internal Audit & Secretary

AUDITORS

Messrs A.F. Ferguson & Co. State Life Building No. 1-C I.I. Chundrigar Road Karachi.

REGISTERED OFFICE

Avari Plaza Fatima Jinnah Road Karachi.

SHARE REGISTRATION OFFICE

C/o Famco Associates (Pvt.) Ltd. State Life Building No. 1-A I.I. Chundrigar Road Karachi.

WEBSITE ADDRESS

www.unileverpakistan.com.pk

1

DIRECTORS’ REVIEW


Turnover grew by 22% in the first nine months of 2009 despite challenging security and economic environment. Third quarter performance was broad based with strong volume growth in HPC, Ice-cream and Spreads. Gross Margin for nine months was healthy and in line with last year. Focus remained on enhancing consumer value while continuing to invest behind brands. Earnings per share grew by 16.4%.

Home & Personal Care

HPC turnover grew by 29%. Surf, Lifebuoy, Sunsilk, Ponds and Fair & Lovely delivered strong volume growth by virtue of enhanced consumer value, supported by increased advertising and promotional effectiveness. Our diversified brand portfolio straddles the socio economic pyramid. This helped meet the challenge of recessionary pressures as consumers continued to down-trade. Surf built on its brand equity and remained top of mind with consumers through its “Dirt is Good” campaign. Lifebuoy's "Healthy Ho Ga Pakistan" activity was well received. Sunsilk's Conditioners campaign is playing the role of category building.

Beverages

Beverages volume declined sharply in the face of rampant smuggling through misuse of the Afghanistan Pakistan Transit Trade Agreement. In addition, sharp increase in international tea cost and the depreciating Rupee continue to impact margin. Consumer value enhancing exercises included promotions in both Lipton tea bags and packet teas.

Frozen Dessert / Ice CreamthOff-take in Frozen desserts / Ice cream improved in the quarter ended 30 September despite

continuing power outages. Innovations like Black Forest Cake launched during Ramzan were well received as Wall's built on its strategy of making Ice Cream consumption a part of Eid celebrations. Paddle Pop “Pyrata” and Moo range also continue to appeal to young consumers. The company was able to maintain key consumer price points to provide maximum value to our customers.

Spreads

The category continued to achieve reasonable top line growth with Blue Band at the forefront

with its “Growth Meter” campaign.

Future Outlook

The company's broad portfolio of popular brands, backed by heightened media presence is well poised to benefit from upturn in consumer sentiment. Strong distribution network in rural areas and superior presence in Modern Trade will positively impact share in these growing parts of the marketplace. On-ground brand activation campaigns in urban areas may be constrained by security conditions. Stability in commodity costs and exchange value of the Rupee are key to maintaining margin. Volume and profitability of the Beverages business are contingent on favourable change in tariffs and / or the transit treaty with Afghanistan. Lobbying by Pakistan Tea Association and the company has yet to yield positive result.

On behalf of the Board

Ehsan A. MalikChairman & Chief Executive

Nine months ended September 30 2009 2008

Net Sales (Rs.000) 28,508,781 23,280,935

Profit before taxation (Rs.000) 3,370,165 2,888,621

Profit after taxation (Rs.000) 2,292,248 1,969,757

172.43 148.17

October 26, 2009

2


Ehsan A. Malik Imran HusainChairman & Chief Executive Director & CFO

CONDENSED INTERIM BALANCE SHEET AS AT SEPTEMBER 30, 2009

Unaudited Audited

Note September 30, December 31,

2009 2008

ASSETS

Non-current assets

Property, plant and equipment 3 4,804,985 4,428,278

Intangibles 3,652 7,303

Long term investments 95,202 95,202

Long term loans 112,791 120,545

Long term deposits and prepayments 423,852 540,027

Retirement benefits - prepayments 4 168,611 205,355

5,609,093 5,396,710

Current assets

Stores and spares 261,742 241,753

Stock in trade 4,144,370 4,251,914

Trade debts 522,961 228,763

Loans and advances 146,374 123,904

Trade deposits and short term prepayments 673,658 516,443

Other receivables 53,347 218,329

Tax refunds due from Government 264,006 301,813

Cash and bank balances 92,162 106,789

6,158,620 5,989,708

Total assets 11,767,713 11,386,41

EQUITY AND LIABILITIES

Capital and reserves

Share capital 669,477 669,477

Reserves 1,857,986 1,546,281

2,527,463 2,215,758

Surplus on revaluation of fixed assets 13,130 13,613

LIABILITIES

Non-current liabilities

Liabilities against assets subject to finance leases 62,186 77,327

Deferred taxation 501,033 369,653

Retirement benefits obligations 4 299,763 239,794

862,982 686,774

Current liabilities

Trade and other payables 6,631,590 4,547,794

Accrued interest / mark up 21,356 64,075

Current maturity of liabilities against

assets subject to finance leases 27,245 32,322

Provisions 397,007 593,559

Dividend payable 1,223,036

Running finance under mark up arrangements 63,904 3,232,523

8,364,138 8,470,273

Total liabilities 9,227,120 9,157,047

Contingency and commitments 5

Total equity and liabilities 11,767,713 11,386,418

(Rupees in thousand)

The annexed notes 1 to 11 form an integral part of this condensed interim financial information.

8

-

3


Ehsan A. Malik Imran HusainChairman & Chief Executive

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 (UNAUDITED)

Sales 6 10,528,435

Cost of sales

Gross profit

Distribution costs

Administrative expenses

Other operating expenses

Other operating income

Restructuring cost

Profit from operations 1,681,105

Finance costs

Profit before taxation 1,555,317

Taxation

Profit after taxation 1,065,666

Other comprehensive income

Surplus on revaluation of fixed assets

incremental depreciation

Income tax relating to component of

other comprehensive income

Other comprehensive income net of tax

Total comprehensive income 1,065,827

Earnings per share - basic and

diluted (Rupees)


Note

September 30, September 30, September 30, September 30,

2009 2008 2009 2008

8,449,171 28,508,781 23,280,935

(6,685,219) (5,293,038) (18,229,651) (14,874,598)

3,843,216 3,156,133 10,279,130 8,406,337

(1,813,336) (1,632,041) (5,629,516) (4,456,493)

(238,336) (265,975) (757,157) (709,678)

(116,079) (83,015) (272,807) (248,333)

16,540 3,151 128,660 121,322

(10,900) - (10,900)

1,178,253 3,737,410 3,113,155

(125,788) (166,951) (367,245) (224,534)

1,011,302 3,370,165 2,888,621

(489,651) (322,290) (1,077,917) (918,864)

689,012 2,292,248 1,969,757

248 248 743

(87) (87) (260)

161 161 483

689,173 2,292,731 1,970,236

80.16 51.83 172.43 148.17


Quarter ended Nine months ended

-

737

(258)

479

Director & CFO

4



CONDENSED INTERIM CASH FLOW STATEMENT


Note September 30, September 30,

2009 2008

CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from customers 34,611,865 28,008,950

Cash paid to suppliers, service providers and employees (21,319,085) (19,559,703)

Payments of indirect taxes and other statutory duties (6,594,539) (5,471,140)

Payments of royalty and technical services fee (886,323) (691,122)

Finance costs paid (409,964) (199,691)

Income tax paid (857,357) (793,768)

Retirement benefit obligations paid (37,915) (7,966)

Decrease / (increase) in long term loans 7,754 (59,294)

Decrease / (increase) in long term deposits

and prepayments 116,175 (538,845)

Net cash from operating activities 4,630,611 687,421

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (755,547) (1,134,843)

Sale proceeds of property, plant and equipment on disposal 52,121 42,017

Return received on savings accounts and term deposits 676 2,048

Dividend received 12 12

Net cash used in investing activities (702,738) (1,090,766)

CASH FLOWS FROM FINANCING ACTIVITIES

Decrease in liabilities against assets subject to

finance leases (24,170) (22,780)

Dividends paid (749,711) (1,392,619)

Short term loan received from associated undertaking - 1,023,000

Net cash used in financing activities (773,881) (392,399)

Net increase / (decrease) in cash and cash equivalents 3,153,992 (795,744)

Cash and cash equivalents at the beginning of the period (3,125,734) (234,875)

Cash and cash equivalents at the end of the period 7 28,258 (1,030,619)



Director & CFO

5



SHARE TOTAL

CAPITAL REVENUE SUB TOTAL

Difference of Contingency Other Unappropriated

capital under Note 2.2 profit

schemes of

arrangements

for

amalgamations

Balance as at January 1, 2008 669,477 70,929 363,106 33,895 842,420 1,310,350 1,979,827

Total comprehensive income for the

nine months ended September 30, 2008 - - - - 1,970,236 1,970,236 1,970,236

Transferred from unappropriated profit to

contingency reserve - Note 5.1 - - 50,201 - (50,201) - -

Employee benefits cost under IFRS 2

- "Share-based Payment"

- Charge for the period - - - 1 8,440 - 1 8,440 18,440

- Settlement during the period - - - (30,601) - (30,601) (30,601)

- - - (12,161) - (12,161) (12,161)

Dividends

For the year ended December 31, 2007

- On cumulative preference shares

@ 5% per share - - - - (239) (239) (239)

- Final dividend on ordinary shares

@ Rs. 63 per share - - - - (837,514) (837,514) (837,514)


- Interim dividend on ordinary shares

@ Rs. 66 per share - - - - (877,395) (877,395) (877,395)

Balance as at September 30, 2008 669,477 70,929 413,307 21,734 1,047,307 1,553,277 2,222,754

Balance as at January 1, 2009 669,477 70,929 321,471 - 1,153,881 1,546,281 2,215,758

Total comprehensive income for the nine months ended September 30, 2009 - - - - 2,292,731 2,292,731 2,292,731

Dividends



@ 5% per share - - - - (239) (239) (239)


@ Rs. 57 per share - - - - (757,751) (757,751) (757,751)



@ Rs. 92 per share - - - - (1,223,036) (1,223,036) (1,223,036)

Balance as at September 30, 2009 669,477 70,929 321,471 - 1,465,586 1,857,986 2,527,463

757,751

R E S E R V E S

The annexed notes 1 to 11 form an integral part of this condensed interim financial

information.

(Rupees in

CAPITAL

thousand)

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY


Director & CFO

6


NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION


1. BASIS OF PREPARATION

2. ACCOUNTING POLICIES

Audited

September 30, December 31,

2009 2008

3. PROPERTY, PLANT AND EQUIPMENT

Operating assets - at net book value 4,258,946 3,988,216

Capital work in progress - at cost

Civil works 7,686 25,600

Plant and machinery 538,353 414,462

546,039 440,062

4,804,985 4,428,278

3.1

The present accounting policies, adopted for the preparation of this condensedinterim financial information are the same as those applied in the preparation of thepreceeding annual financial statements of the Company for the year endedDecember 31, 2008.

This condensed interim financial information has been prepared in accordance withthe requirements of International Accounting Standard No. 34, "Interim FinancialReporting" and is being submitted to the shareholders as required by Section 245 ofthe Companies Ordinance, 1984 and the Listing Regulations of the Karachi, Lahoreand Islamabad Stock Exchanges.


Details of additions and disposals to operating assets during the nine months endedSeptember 30, 2009 are:


2009 2008 2009 2008

Owned Leasehold land - - 181 -

Building on freehold land 22,807 60,510 - -

Building on leasehold land 2,358 272 - -

Plant and machinery 520,481 979,379 5,344 3,836

97,154 54,105 82 89

Furniture and fittings 4,070 3,518 296 393

Motor vehicles 2,700 21,099 8,565 8,749

Assets held under finance leasesMotor vehicles 3,952 54,396 1,218 1,344

653,522 1,173,279 15,686 14,411

Electrical, mechanical and office equipment


Additions Disposals

(at cost) (at net book value)

7

4. RETIREMENT BENEFITS

5. CONTINGENCY AND COMMITMENTS

5.1 CONTINGENCY

5.2 COMMITMENTS

6. SEGMENT ANALYSIS

6.1 SEGMENT RESULTS

The commitments for capital expenditure outstanding as at September 30, 2009amounted to Rs. 75.92 million (December 31, 2008: Rs. 126.23 million).

With effect from January 1, 2009 the Company has given option to its managementstaff for a new defined contribution plan i.e., DC Pension Fund in place of existingpension and management gratuity defined benefit schemes. As a result, presentvalue of obligation as at January 1, 2009 amounting to Rs. 225.02 million under theexisting pension and management gratuity plans in respect of employees who haveopted for the new scheme has been transferred to the DC Pension Fund.

Unrecognised actuarial losses of Rs. 37.01 million have been recognised in thisfinancial information as a result of option availed by the employees.

The contingency amount reported in respect of Sindh Development InfrastructureFee / Cess in the annual financial statements has remained constant to Rs. 321.47million as at September 30, 2009. There has been no change in its status fromDecember 31, 2008.

Home and

Personal

Care

Beverages Ice Cream Other Total

For the quarter ended

Turnover 6,077,568 2,912,697 1,309,731 228,439 10,528,435

Segment result 1,403,741 192,622 137,612 54,107 1,788,082


Turnover 4,841,907 2,390,463 1,029,920 186,881 8,449,171

Segment result 984,285 251,315 33,923 (9,186) 1 ,260,337

September 30, 2008


September 30, 2009

8

Reconciliation of segment results with profit after tax is as follows:

6.2 SEGMENT ASSETS

Segment assets consist primarily of property, plant and equipment, intangibles,stores and spares, stock in trade and trade and other debts.

September September September September

2009 2008 2009 2008

1,788,082 1,260,337 3,899,492 3,247,134

Administrative expenses unallocated 3,462 (2,220) (7,035) (6,968)

Other operating expenses (116,079) (83,015) (272,807) (248,333)

Other operating income 16,540 3,151 128,660 121,322

Restructuring costs (10,900) - (10,900) -

Finance cost (125,788) (166,951) (367,245) (224,534)

Taxation (489,651) (322,290) (1,077,917) (918,864)

Profit after tax 1,065,666 689,012 2,292,248 1,969,757

Total profit for reportable segments


Nine months endedQuarter ended

Home and

Personal

Care


For nine months ended

Turnover 16,064,420 8,320,048 3,443,508 680,805 28,508,781

Segment result 2,956,664 576,864 308,743 57,221 3,899,492


Turnover 12,432,246 7,194,391 3,118,985 535,313 23,280,935

Segment result 2,544,165 635,456 81,646 (14,133) 3,247,134

September 30, 2009

September 30, 2008


Home and

Personal

Care


As at September 30, 2009

Total segment assets 3,745,243 2,178,413 3,135,076 123,286 9,182,018

As at December 31, 2008 -

Audited



9

AuditedSeptember 30, December 31,

2009 2008

Total for reportable segments 9,182,018 8,763,932

Unallocated assets 2,585,695 2,622,486

Total as per balance sheet 11,767,713 11,386,418

September 30, September 30,

2008 2009


7. CASH AND CASH EQUIVALENTS


Running finance under mark up arrangements (63,904) (1,171,277)

28,258 (1,030,619)

8. RELATED PARTY TRANSACTIONS

Significant related party transactions are:

Relationship with the Nature of transactions

Company

i. Ultimate parent company: Royalty and technical

services fee 970,847 825,246

ii. Other related Purchase of goods 5,617,615 4,045,711parties:

Reimbursement of expenses

to related party 31,977 21,660

Sale of goods 67 -

Recovery of expenses from

related party 74,737 51,354

Fee for providing of services

to related parties 9,983 14,099

Purchase of fixed assets 35,763 -

Short term loan received - 1,023,000

Interest on short term loan - 15,776

iii. Key management Salaries and other short termpersonnel:

employee benefits 68,786 50,100

Post employment benefits 8,724 5,342

iv. Others: Donations 5,622 5,134

Nine months

Reconciliation

ended

of segment assets with total assets in the balance sheet is as follows:


10


9. MONOPOLY CONTROL AUTHORITY ORDER

10. CORRESPONDING FIGURES

10.1

11. DATE OF ISSUE

There is no change in status as reported in the latest annual financial statementsregarding the Monopoly Control Authority (MCA) Order terminating thenon-competition agreement, requiring the Company to refund the amount ofRs. 250 million to Dalda Foods (Private) Limited. The MCA order was stayed andthe appeal is pending for hearing.

This condensed interim financial information has been authorised for issueon October 26, 2009 by the Board of Directors of the Company.

Prior year figures have been rearranged for the purpose of better presentationand comparison and these are as follows:

Quarter Nine months Year ended

ended ended December 31,

2008

Administrative expenses Cost of sales 46,390 139,068 -

Operating expenses Administrative expenses 2,220 6,968 -

Stock in trade Stores and Spares - - 9,856

Reclassification to

component

Reclassification from

component


September 30, 2008

Director & CFO

11

Unilever Pakistan Limited and

Its Subsidiary Companies

CONDENSED INTERIM

CONSOLIDATED FINANCIAL INFORMATION

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009

12

UNILEVER PAKISTAN LIMITED AND ITS SUBSIDIARY COMPANIES


CONDENSED INTERIM CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30, 2009

Unaudited Audited

Note September 30, December 31,

2009 2008

ASSETS

Non-current assets

Property, plant and equipment 4

Intangibles

Long term investments

Long term loans

Long term deposits and prepayments

Retirement benefits - prepayments 5

Current assets

Stores and spares

Stock in trade

Trade debts

Loans and advances

Accrued interest / mark up

Trade deposits and short term prepayments

Other receivables

Tax refunds due from Government

Cash and bank balances

Total assets

EQUITY AND LIABILITIES

Capital and reserves

Share capital 669,477

Reserves

Surplus on revaluation of fixed assets 13,130

LIABILITIES

Non-current liabilities

Liabilities against assets subject to finance leases

Deferred taxation

Retirement benefits obligations 5

Current liabilities

Trade and other payables

Taxation - provision less payments

Accrued interest / mark up

Current maturity of liabilities against

assets subject to finance leases

Provisions

Dividend payable

Running finance under mark up arrangements

Total liabilities

Contingency and commitments

Total equity and liabilities 11,807,568


The annexed notes 1 to 12 form an integral part of this condensed interim consolidated financial information.

4,804,985 4,428,278

3,652 7,303

200 200

112,791 120,545

423,852 540,027

168,611 205,355

5,514,091 5,301,708

261,742 241,753

4,144,370 4,251,914

522,961 228,763

146,374 123,904

2,326 3,874

673,658 516,443

53,347 218,258

259,712 301,813

228,987 230,009

6,293,477 6,116,731

11,807,568 11,418,439

669,477

1,896,273 1,575,643

2,565,750 2,245,120

13,613

62,186 77,327

501,033 369,653

299,763 239,794

862,982 686,774

6,633,158 4,549,434

- 1,019

21,356 64,075

27,245 32,322

397,007 593,559

1,223,036 -

63,904 3,232,523

8,365,706 8,472,932

9,228,688 9,159,706

6

11,418,439

Director & CFO

13



CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNTINTERIM


Sales 7 10,528,435

Cost of sales

Gross profit

Distribution costs

Administrative expenses

Other operating expenses

Other operating income

Restructuring cost

Profit from operations 1,685,532

Finance costs

Profit before taxation 1,559,743

Taxation

Profit after taxation 1,068,543

Other comprehensive income

Surplus on revaluation of fixed assets

incremental depreciation

Income tax relating to component of

other comprehensive income

Other comprehensive income net of tax

Total comprehensive income 1,068,704

Earnings per share - basic and

diluted (Rupees)


Note


2009 2008 2009 2008

8,449,171 28,508,781 23,280,935

(6,685,219) (5,293,038) (18,229,651) (14,874,598)

3,843,216 3,156,133 10,279,130 8,406,337

(1,813,336) (1,632,041) (5,629,516) (4,456,493)

(238,346) (266,039) (757,187) (710,220)

(116,079) (83,015) (272,807) (248,333)

20,977 6,032 142,421 129,970

(10,900) - (10,900) -

1,181,070 3,751,141 3,121,261

(125,789) (166,951) (367,246) (224,534)

1,014,119 3,383,895 2,896,727

(491,200) (323,276) (1,082,722) (921,701)

690,843 2,301,173 1,975,026

248 248 743 737

(87) (87) (260) (258)

161 161 483 479

691,004 2,301,656 1,975,505

80.38 51.97 173.10 148.57


Quarter ended Nine months ended

Director & CFO

14



CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT


Note September 30, September 30,

2009 2008

CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from customers 34,611,865 28,008,950

Cash paid to suppliers, service providers and employees (21,319,258) (19,557,962)

Payments of indirect taxes and other statutory duties (6,594,539) (5,471,140)

Payments of royalty and technical services fee (886,323) (691,122)

Finance costs paid (409,965) (199,691)

Income tax paid (858,888) (796,811)

Retirement benefit obligations paid (37,915) (7,966)

Decrease / (increase) in long term loans 7,754 (59,294)

Decrease / (increase) in long term deposits

and prepayments 116,175 (538,845)

Net cash from operating activities 4,628,906 686,119

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (755,547) (1,134,843)

Sale proceeds of property, plant and equipment on disposal 52,121 42,017

Return received on savings accounts and term deposits 15,986 2,071

Dividend received 12 12

Net cash used in investing activities (687,428) (1,090,743)

CASH FLOWS FROM FINANCING ACTIVITIES

Decrease in liabilities against assets subject to

finance leases (24,170) (22,780)

Dividends paid (749,711) (1,392,619)

Short term loan received from associated undertaking - 1,023,000

Net cash used in financing activities (773,881) (392,399)

Net increase / (decrease) in cash and cash equivalents 3,167,597 (797,023)

Cash and cash equivalents at the beginning of the period (3,002,514) (118,555)

Cash and cash equivalents at the end of the period 8 165,083 (915,578)


Director & CFO


15



CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


SHARE TOTAL

CAPITAL REVENUE SUB TOTAL

Difference of Contingency Other Unappropriated

capital under Note 2.2 profit

schemes of

arrangements

for

amalgamations

Balance as at January 1, 2008 669,477 70,929 363,106 33,895 864,191 1,332,121 2,001,598

Total comprehensive income for the

nine months ended September 30, 2008 - - - - 1,975,026 1,975,026 1,975,026

Transferred from unappropriated profit to

contingency reserve - Note 6.1 - - 50,201 - (50,201) - -

Employee benefits cost under IFRS 2

- "Share-based Payment"

- Charge for the period - - - 18,440 - 1 8,440 18,440

- Settlement during the period - - - (30,601) - (30,601) (30,601)

- - - (12,161) - (12,161) (12,161)

Dividends



@ 5% per share - - - - (239) (239) (239)


@ Rs. 63 per share - - - - (837,514) (837,514) (837,514)



@ Rs. 66 per share - - - - (877,395) (877,395) (877,395)

Balance as at September 30, 2008 669,477 70,929 413,307 21,734 1 ,073,868 1,579,838 2,249,315

Balance as at January 1, 2009 6 69,477 70,929 321,471 - 1,183,243 1,575,643 2,245,120

Total comprehensive income for the nine months ended September 30, 2009 - - - - 2,301,656 2,301,656 2,301,656

Dividends



@ 5% per share - - - - (239) (239) (239)


@ Rs. 57 per share - - - - (757,751) (757,751) (757,751)



@ Rs. 92 per share - - - - (1,223,036) (1,223,036) (1,223,036)

Balance as at September 30, 2009 669,477 70,929 321,471 - 1,503,873 1,896,273 2,565,750

757,751

R E S E R V E S

The annexed notes 1 to 12 form an integral part of this condensed interim consolidated financial

information.

(Rupees in

CAPITAL

thousand)

Director & CFO

16


NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION CONSOLIDATED


1. BASIS OF PRESENTATION

2. BASIS OF PREPARATION

3. ACCOUNTING POLICIES

Audited

September 30, December 31,

2009 2008

4. PROPERTY, PLANT AND EQUIPMENT

Operating assets - at net book value 4,258,946 3,988,216

Capital work in progress - at cost

Civil works 7,686 25,600

Plant and machinery 538,353 414,462

546,039 440,062

4,804,985 4,428,278

4.1

The present accounting policies, adopted for the preparation of this condensedinterim consolidated financial information are the same as those applied in thepreparation of the preceeding annual consolidated financial statements of the Groupfor the year ended December 31, 2008.

This condensed interim consolidated financial information has been prepared inaccordance with the requirements of International Accounting Standard No. 34,"Interim Financial Reporting" and is being submitted to the shareholders as requiredby Section 245 of the Companies Ordinance, 1984 and the Listing Regulations of theKarachi, Lahore and Islamabad Stock Exchanges.


This condensed interim consolidated financial information includes the financialinformation of Unilever Pakistan Limited (the parent company), Lever Chemicals(Private) Limited, Levers Associated Pakistan Trust (Private) Limited and Sadiq(Private) Limited. The condensed interim financial information of the subsidiarycompanies has been consolidated on a line by line basis.

All inter company balances and transactions have been eliminated.

Details of additions and disposals to operating assets during the nine months endedSeptember 30, 2009 are:


2009 2008 2009 2008

Owned Leasehold land - - 181 -

Building on freehold land 22,807 60,510 - -

Building on leasehold land 2,358 272 - -

Plant and machinery 520,481 979,379 5,344 3,836

97,154 54,105 82 89

Furniture and fittings 4,070 3,518 296 393

Motor vehicles 2,700 21,099 8,565 8,749

Assets held under finance leasesMotor vehicles 3,952 54,396 1,218 1,344

653,522 1,173,279 15,686 14,411

Electrical, mechanical and office equipment


Additions Disposals

(at cost) (at net book value)

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5. RETIREMENT BENEFITS

6. CONTINGENCY AND COMMITMENTS

6.1 CONTINGENCY

6.2 COMMITMENTS

7. SEGMENT ANALYSIS

7.1 SEGMENT RESULTS

The commitments for capital expenditure outstanding as at September 30, 2009amounted to Rs. 75.92 million (December 31, 2008: Rs. 126.23 million).

Unrecognised actuarial losses of Rs. 37.01 million have been recognised in thisfinancial information as a result of option availed by the employees.

The contingency amount reported in respect of Sindh Development Infrastructure Fee/ Cess in the annual consolidated financial statements has remained constant to Rs. 321.47 millionas at September 30, 2009. There has been no change in its status from December31, 2008.

With effect from January 1, 2009 the Group has given option to its management stafffor a new defined contribution plan i.e., DC Pension Fund in place of existing pensionand management gratuity defined benefit schemes. As a result, present value ofobligation as at January 1, 2009 amounting to Rs. 225.02 million under the existingpension and management gratuity plans in respect of employees who have opted forthe new scheme has been transferred to the DC Pension Fund.

Home and

Personal

Care



Turnover 6,077,568 2,912,697 1,309,731 228,439 10,528,435

Segment result 1,403,741 192,622 137,612 54,107 1,788,082


Turnover 4,841,907 2,390,463 1,029,920 186,881 8,449,171

Segment result 984,285 251,315 33,923 (9,186) 1,260,337

September 30, 2008


September 30, 2009

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Reconciliation of segment results with profit after tax is as follows:

7.2 SEGMENT ASSETS

Segment assets consist primarily of property, plant and equipment, intangibles,stores and spares, stock in trade and trade and other debts.

September September September September

2009 2008 2009 2008

1,788,082 1,260,337 3,899,492 3,247,134

Administrative expenses unallocated 3,452 (2,284) (7,065) (7,510)

Other operating expenses (116,079) (83,015) (272,807) (248,333)

Other operating income 20,977 6,032 142,421 129,970

Restructuring costs (10,900) - (10,900) -

Finance cost (125,789) (166,951) (367,246) (224,534)

Taxation (491,200) (323,276) (1,082,722) (921,701)

Profit after tax 1,068,543 690,843 2,301,173 1,975,026

Total profit for reportable segments


Nine months endedQuarter ended

Home and

Personal

Care



Turnover 16,064,420 8,320,048 3,443,508 680,805 28,508,781

Segment result 2,956,664 576,864 308,743 57,221 3,899,492


Turnover 12,432,246 7,194,391 3,118,985 535,313 23,280,935

Segment result 2,544,165 635,456 81,646 (14,133) 3,247,134

September 30, 2009

September 30, 2008


Home and

Personal

Care


As at September 30, 2009


As at December 31, 2008 -

Audited



AuditedSeptember 30, December 31,

2009 2008

Total for reportable segments 9,182,018 8,763,932

Unallocated assets 2,625,550 2,654,507

Total as per balance sheet 11,807,568 11,418,439

Reconciliation of segment assets with total assets in the balance sheet is as follows:


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September 30, September 30,

2008 2009


8. CASH AND CASH EQUIVALENTS


Running finance under mark up arrangements (63,904) (1,171,277)

165,083 (915,578)

9. RELATED PARTY TRANSACTIONS

Significant related party transactions are:

Relationship with the Nature of transactions

Group

i. Ultimate parent company: Royalty and technical

services fee 970,847 825,246

ii. Other related Purchase of goods 5,617,615 4,045,711parties:

Reimbursement of expenses

to related party 31,977 21,660

Sale of goods 67 -

Recovery of expenses from

related party 74,737 51,354

Fee for providing of services

to related parties 9,983 14,099

Purchase of fixed assets 35,763 -

Short term loan received - 1,023,000

Interest on short term loan - 15,776

iii. Key management Salaries and other short termpersonnel:

employee benefits 68,786 50,100

Post employment benefits 8,724 5,342

iv. Others: Donations 5,622 5,134

Nine months ended

10. MONOPOLY CONTROL AUTHORITY ORDER

11. CORRESPONDING FIGURES

11.1

There is no change in status as reported in the latest annual financial statementsregarding the Monopoly Control Authority (MCA) Order terminating the non-competition agreement, requiring the Group to refund the amount of Rs. 250million to Dalda Foods (Private) Limited. The MCA order was stayed and theappeal is pending for hearing.

Prior year figures have been rearranged for the purpose of better presentationand comparison and these are as follows:

Quarter Nine months Year endedended ended December 31,

2008

Administrative expenses Cost of sales 46,390 139,068 -Operating expenses Administrative expenses 2,230 6,998 -Stock in trade Stores and Spares - - 9,856

Reclassification to component

Reclassification from component

(Rupees in thousand) September 30, 2008

12. DATE OF ISSUE

This condensed interim consolidated financial information has been authorisedfor issue on October 26, 2009 by the Board of Directors of the Group.

Ehsan A. Malik Imran HusainChairman & Chief Executive Director & CFO

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